You expected to receive $1,000 today, $1000 one month from now and $1000 two months from now.

Fantastic news! We've Found the answer you've been seeking!

Question:

You expected to receive $1,000 today, $1000 one month from now and $1000 two months from now. What is the present value of these cash flows if the dicount rate is 12% APR wit monthly compounding?

Related Book For answer-question

Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

See More Books

Posted Date: Apr 27, 2024 06:05 AM

See More Questions

You have just had a tenant sign a lease contract that guarantees you payments of $100,000 at the end of each year for the next five years. What is the present value of these future cash flows...
13. What is a lower bound for the price of 3-month call option on a non- dividend-paying stock when the stock price is $50, the strike price is $45, and the 3-month risk-free interest rate is 8%?...
1. Suppose someone offered you your choice of two equally risky annuities, each paying $5,000 per year for 5 years. One is an annuity due, while the other is a regular (or deferred) annuity. If you...
Midwest Inc. is a medium-size company that has been in business for 20 years. The industry has become very competitive in the last few years, and Midwest has decided that it must grow if it is going...
What is a superconductor? What is one use of superconductors?
The Assignment: The Integrative Case Study is a full-length case study of a specific company, from which students could discover the major aspects of the company's business strategy, its management...
What is the major drawback of analog-frequency analyzers?
Assume that youve put in a year to 18 months working in the cell phone department at a Best Buy store. Apply the Hersey and Blanchard model of leadership to your situation: What must your superiors...
For a "normal" $300m venture capital partnership: 1.How many portfolio companies would you expect? 2.How many of the portfolio companies do you expect to fail at a 100% loss to the VC partnership?...
What is the difference between Income statement, statement of financial position and cash flow statement? Please explain why cash flow projections is an important activity for a finance manager?
What further actions might the Fed take in 2021 to influence the real GDP growth in 2022? The IMF projected a global growth rate of 6% in 2021, the highest rate since the 1970s, as vaccine...
The Wynn Oil Company, which conducted an enormous amount of business with Latin American companies, argued that being male was a bona fide occupational qualification (BFOQ) for the position of sales...
During the 2016 elections in Northern Ireland, candidates focused on fiscal issues with many promising lower corporate taxes. It was estimated that if Northern Ireland were independent, its fiscal...
Cut Taxes and Boost Spending? Raise Taxes and Cut Spending? Cut Taxes and Cut Spending? This headline expresses three views about what to do to get the U.S. economy growing more rapidly and...
What are the policy actions taken by the Fed and the U.S. Treasury in response to the financial crisis of 20072008?
Who is Zeon? Name an idea Zeon is famous of? Read the discussion NACHMAN from Los Angeles by Leonard Michaels and answer the above question:
Evenflow Power Co. is considering a new project that is a little riskier than the current operations of the company. Thus, management has decided to add an additional 1.5% to the company's overall...
A container of an organic liquid a $25^{\circ} \mathrm{C}$ has a mass of $1100 \mathrm{~kg}$ and a volume of $0.94 \mathrm{~m}^{3}$. Find the liquid's weight, its density, and its specific gravity.
What is the pressure one mile $(1.6 \mathrm{~km})$ beneath the ocean's surface?
At what pressure will water boil at $65^{\circ} \mathrm{C}$ ? The vapor pressure of water can be determined from the Antoine equation: \[\frac{P(P a)}{1 \times...

You expected to receive $1,000 today, $1000 one month from now and $1000 two months from now.

Question:

Expert Answer:

To calculate the present value of the given cash flows we need to use the present value formula and ... View the full answer

Fundamentals of Corporate Finance

Students also viewed these finance questions